Spring REIT

A REIT is a collective investment scheme constituted as a unit trust that invests primarily in income-producing real estate assets and uses the income to provide stable returns to its Unitholders.

Spring REIT is a real estate investment trust established to own and invest in high quality income-producing real estate assets. Currently, Spring REIT's real estate assets primarily include two Premium Grade office buildings in the CBD of Beijing with total office gross floor area of 120,245 square meters, as well as a portfolio of 84 retail properties in the UK.

Spring REIT seeks to offer to Unitholders stable distributions and the potential for sustainable long-term growth. It is the first Hong Kong REIT to offer direct exposure to two Premium Grade office buildings located in the central business district (CBD) of Beijing.

The portfolio of Spring REIT comprises:

1) All the office floors of Office Tower 1 and Office Tower 2 in China Central Place, a prime mixed-use complex in Beijing, as well as approximately 600 car parking spaces in the underground levels of the two office buildings. Total office gross floor area ("GFA") amounts to 120,245 square meters.

2) 84 retail properties in the UK that are leased to Kwik-Fit, a market-leading car servicing provider in the country.

Spring REIT is managed by Spring Asset Management Limited (the "REIT Manager"), a company incorporated in Hong Kong and a subsidiary of Mercuria Investment Co., Ltd. The REIT Manager is licensed by the Securities and Futures Commission of Hong Kong ("SFC") to conduct the regulated activity of asset management, as required by the Code on Real Estate Investment Trusts ("REIT Code").

Mercuria Investment is a private equity investment management company based in Japan with extensive experience in investing in companies, real estate and other projects in growth sectors in Japan, China and other parts of Asia. Mercuria Investment is owned by Development Bank of Japan, Itochu Corporation, Asuka Holdings Co., Ltd., Sumitomo Mitsui Trust Bank and other shareholders.

(i) Access to sizable and high-quality real estate investments

REIT investors benefit from a sizable pool of capital that can acquire interests in much larger real estate assets than what would typically be accessible to capital of individual investors. By investing in the units of Spring REIT, investors can own part of its sizable and high-quality real estate assets in manageable position sizes.

(ii) Dedicated and professional management

Investors of Spring REIT benefit from the expertise of a dedicated and experienced management team responsible for the day-to-day operation and the development of the business.

(iii) Promising dividend distribution

In accordance with the requirements of the REIT Code issued by the SFC, the REIT Manager’s policy is to distribute to Unitholders no less than 90% of Spring REIT’s total distributable income for each financial year.

Please see the "Dividend Distribution" section of our website for additional information.

(iv) Transparency and governance

Spring REIT adopts a statutory and regulatory corporate governance framework which requires the Manager to be licensed and regulated on an on-going basis by the SFC. It also adopts an established internal corporate governance and disclosure framework overseen by an independent Trustee and the Board of the REIT Manager.

(v) Enhanced liquidity

Being listed on the Hong Kong Stock Exchange, investors can buy and sell the units of Spring REIT relatively easily and efficiently. In contrast, directly buying and selling properties involves higher expenses and takes a longer time.

Spring REIT is listed on the Main Board of the Stock Exchange of Hong Kong Limited under stock code 1426. It is traded just like any Main Board listed stocks in Hong Kong.

Hong Kong Stock Exchange (stock code: 1426)

The board lot size is 1,000 units.

Units of Spring REIT are owned by a number of institutional and retail investors in Hong Kong and around the world. For the latest unitholding disclosure information, please refer to the "Disclosure of Interests" section of the HKExnews website (http://www.hkexnews.hk) of the Hong Kong Stock Exchange.

The REIT Manager’s policy is to distribute to Unitholders no less than 90% of Spring REIT’s annual distributable income for each financial year. Pursuant to the Trust Deed, the REIT Manager may at its discretion from time to time direct the Trustee to make distributions over and above the minimum 90% of total distributable income. Distributions will be declared in Hong Kong dollars.

Please see the "Dividend Distribution" section of our website for additional information.

Spring REIT’s initial distribution policy is that two distributions will be made in respect of each year, being distributions with respect to the six-month periods ending June 30 and December 31. It is anticipated that interim and final distributions will be paid in September/October and May in each year, respectively.

Please see the "Dividend Distribution" section of our website for additional information.

No. Distribution will be paid to persons who are Unitholders as at the record date with respect to each distribution. If your are in doubt, please consult your financial advisor or stock broker.

TRICOR INVESTOR SERVICES LIMITED
17/F, Far East Finance Centre,
16 Harcourt Road,
Hong Kong
Tel: +852 2980 1333